Asia’s middle distillates markets went back to being quiet, though buying interest on window did gain momentum slightly and margins bounced back, as more refinery sales activity for April spot lots continued.
On the physical spot front, more jet fuel offers emerged from China-based refineries, with prior sales mostly done in the discounted territory – averaging at around $1 per barrel.
Some April-loading diesel cargoes loading from northeast Asia were seemingly being discussed at discounts of more than $1 per barrel, two trade sources said.
Some turnarounds in April to June will still curtail supplies and help to tighten overall Asian market fundamentals, one trade source said.
The diesel east-west price spread narrowed further this week to $22 per metric ton, some trader sources said they remained mixed on near-term price drivers in Asia.
The 10ppm sulphur gasoil refining margins (GO10SGCKMc1) rebounded by $1 a barrel at the market’s close.
Cash differentials (GO10-SIN-DIF) barely moved at 9 cents a barrel, with a buy-sell gap hindering discussions though lower-priced offers were still readily available.
Regrade (JETREG10SGMc1) widened to discounts of around 11 cents per barrel.
SINGAPORE CASH DEALS
– No deals for both fuels
INVENTORIES
– U.S. crude oil and fuel inventories fell last week, market sources said, citing American Petroleum Institute figures on Tuesday.
– Middle distillates inventories held at Fujairah Oil Industry Zone dipped to more than a one-month low of 1.995 million barrels in the week of March 24, according to industry information service S&P Global Commodity Insights.
NEWS
– Oil prices edged higher on Wednesday on supply concerns with the U.S. stepping up efforts to limit Venezuelan and Iranian oil exports, while a bigger-than-expected drop in U.S. crude inventories also lent support.
– Mexican state energy company Pemex is actively looking to diversify its market for both motor fuel imports and crude oil exports, the head of its international trading unit PMI said on Tuesday.
– A U.S. plan to slap tariffs on countries buying sanctioned Venezuelan oil marks an unprecedented, and potentially potent, mixture of punitive economic measures against a geopolitical foe that Washington could replicate against other countries like Russia and Iran, analysts said.
– Russia’s daily oil exports from its western ports are set to rise by some 100,000 barrels per day to 1.97 million bpd in April from March as the impact of seasonal domestic refinery maintenance outweighs output cuts under an OPEC+ agreement, Reuters calculations based on data from three sources showed.
Source: Reuters